By Gloria Methri
As the FinTech industry heads towards 2025, its trajectory is shaped by a convergence of innovation, consumer expectations and regulatory frameworks. Insights from key voices payable., along with global trends, paint a dynamic picture of the year ahead. From integrated finance to artificial intelligence (AI), these forces are set to redefine how businesses and consumers interact with financial services.
Convenience-Driven Innovation in Consumer Payments
The demand for convenience will drive the most significant innovations in FinTech. Digital wallets and account-to-account (A2A) payments are expected to become the dominant payment methods, providing consumers with seamless and secure experiences. According to Ugne Buraciene, CEO of payabl. Group, digital wallets will overtake alternatives such as Buy Now, Pay Later (BNPL) and QR payments, strengthening their position as the preferred choice of consumers and merchants.
AI will continue to lead the charge, but not as just a FinTech trend. Instead, it will serve as a strategic tool for fraud detection, personalization, and operational efficiency. However, Buraciene warns that AI also gives fraudsters new capabilities, urging businesses to adopt proactive and innovative measures to stay ahead of the curve.
Instant payments are expected to grow in importance, although the looming SEPA Instant deadline poses a preparation challenge for many. At the same time, fraud prevention will remain a key priority, with regulators and businesses investing in consumer education and AI-based defenses.
Broadening the horizon of integrated finance
Integrated financealthough already gaining traction, is poised for exponential growth in 2025. Beyond payments, industries like retail, hospitality, and even traditionally slower-to-adopt sectors like healthcare and construction should integrate tailored financial services into their platforms. Access to capital for small businesses will be a standout segment, offering flexible and personalized lending solutions that traditional banks have often failed to deliver.
For platforms, integrated finance will act as both a loyalty booster and a revenue generator. Those who are able to provide tailored solutions to underserved sectors will gain a competitive advantage. As Buraciene points out, the coming year will be crucial for platforms seeking to harness the untapped potential of embedded finance.
Incremental progress in Open Banking
Adoption of Open Banking will remain slow, with a lack of scalable and compelling use cases limiting its mass market appeal. Kristaps Zips, UK CEO of payabl., notes that 2025 could see variable recurring payments (VRP) emerge as a revolutionary use case. These flexible and secure payments could demonstrate the tangible benefits of Open Banking for businesses and consumers.
However, trust issues and concerns about privacy and security will continue to hinder progress. Collaboration between regulators and industry will be key to laying the foundation for broader adoption in the years to come.
Regulatory pressures and compliance congestion
The regulatory landscape will become increasingly complex in 2025 as overlapping mandates such as PSD3, SEPA updates and DORA (Digital Operational Resilience Act) converge. This “compliance congestion” will challenge businesses to integrate regulatory requirements without compromising customer experience. Proactive compliance strategies will distinguish leaders in this space.
PSD3 will shape the European payments ecosystem. Although delays in implementation are expected, stakeholders expect significant progress in defining its role in innovation and resilience by the end of the year.
Convergence of technologies and evolution of payments
In 2025, it will be about refining existing technologies rather than searching for the next big thing. Blockchain, AI and mobile computing are converging to create smarter, faster and more secure payment systems. Decentralized identities, predictive fraud detection, and real-time cross-border transactions are just some of the advancements likely to gain traction.
Central bank digital currencies (CBDCs) will move from concept to implementation, with the digital euro leading the way. However, these innovations will also bring new risks, such as AI-generated fraud and deepfake scams, testing the resilience of even the most advanced systems.
Diversity and inclusion
Diversity in FinTech will move from symbolic gestures to tangible results. As more women and underrepresented groups take on leadership roles, the industry will showcase success stories that inspire meaningful change. Mentoring programs will continue to play a critical role in empowering the next generation of talent, especially as Gen Z founders bring new perspectives.